Process Costing at Procter & Gamble

Values:

• Total Production Costs: $2,000,000
• Equivalent Units: 80,000

Requirements:

1. Calculate the cost per equivalent unit using the FIFO method.
2. Prepare a reconciliation of units and costs.
3. Compute the cost of goods completed and transferred out.
4. Discuss the benefits of process costing in a mass production environment.